The Four Steps of Visualizing Strategy : Blue Ocean Strategy

The Four Steps of Visualizing Strategy : Blue Ocean Strategy

1. Visual Awakening

• Compare your business with your competitors by drawing your "as is" strategy canvas.
• See where your strategy needs to change.

2. Visual Exploration

• Go into the field to explore the six paths to creating blue oceans.
• Observe the distinctive advantages of alternative products and services.
• See which factors you should elimate, create, or change.

3. Visual Strategy Fair

• Draw your "to be" strategy canvas based on insights from field observations.
• Get feedback on alternative strategy canvases from customers, competitors' customers, and noncustomers.
• Use feedback to build the best "to be" future strategy.

4. Visual Communication

• Distribute your before-and-after strategic profiles on one page for easy comparison.
• Support only those projects and operational moves that allow your company to close the gaps to actualize the new strategy.

Source: For more details, please read on page 84, Blue Ocean Strategy, W. Chan Kim and Renee Mauborgne.

The Six Principles of Blue Ocean Strategy

The Six Principles of Blue Ocean Strategy

Formulation Principles
1. Reconstruct market boundaries > reduce search risk
2. Focus on the big picture, not the numbers > reduce planning risk
3. Reach beyond existing demand > reduce scales reisk
4. Get the strategic sequence right > reduce business model risk

Executive Principles
5. Overcome key organizational hurdles > reduce organizational risk
6. Build executive into strategy > reduce management risk

Source: For more information, please read page 21, Blue Ocean Strategy, How to Create Uncontested Market Space and Make the Competition Irrelevant, W. Chan Kim and Renee Mauborgne.

Blue Ocean Grand Slam

Blue Ocean Grand Slam

“There’s no such thing as a permanently great company or a permanently great industry. All industries rise and fall as do companies. However, there are permanently smart strategic moves” – Blue Ocean Strategy co-authors W. Chan Kim & Renee Mauborgne, from Chief Executive Magazine article “Flouting Conventional Wisdom” (May 2003).

Accepting the defined market boundaries in which a particular business operates—the status quo way of doing business—is a surefire path to cut-throat, bloody Red Oceans. In highly competitive industries, such as sporting and event ticket sales for example, businesses are continually faced with an uphill struggle to profitability as they all compete for share of the same pie.

With this in mind, today we turn our attention to RazorGator, one such company which is calling on some Blue Ocean-like thinking to find untapped value in hidden, complementary offerings. In the process, as RazorGator’s CEO Jeff Lapin describes, "We're morphing from a traditional ticket broker to a provider of services to corporations in the ticketing world."

From a recent Fast Company report:

Bank of America's ticket inventory numbers in the hundreds of thousands, including seats in more than 80 suites for teams like the Boston Red Sox, the Dallas Cowboys, and the San Francisco Giants. Managing that inventory? That wasn't really the bank's forte.

So last summer, the bank signed on with online reseller RazorGator. Using proprietary software, RazorGator manages approvals for bank staffers to use those tickets, both to comply with Sarbanes-Oxley and to increase return on its investment. "In past years, people managed tickets in desk drawers," says Bill Read, Bank of America's sports-and-events ticket management executive. "With the online system, it's all centrally managed, so we know what tickets we have and how they are utilized. We look at the clients, the order, whether all the tickets were used, and whether there was a benefit to the organization."

At US$ 3 to US$ 8 a ticket, RazorGator's work with Bank of America and a handful of other Fortune 500 clients is lucrative. It also gives RazorGator a way of differentiating itself from the pack. "If a corporation wanted to keep track of gifts for approvals and for Sarbanes-Oxley, our software could be programmed for that type of request."

Source: http://blueoceanstrategy.typepad.com/creatingblueoceans/2007/11/index.html

One Minute Summaries: 2001 – Good to Great – Jim Collins

One Minute Summaries: 2001 – Good to Great – Jim Collins

Blue Ocean Strategy builds on and fuses together the collective wisdom of some of the greatest ideas, concepts and frameworks throughout history on the topic of business strategy, human motivation, and leadership. After a work is featured, it is posted to the 'One Minute Summaries' section, where you can reference the whole collection of concepts. And now we present our next installment in the One Minute Summaries series:

One Minute Summaries: 2001 – Good to Great – Jim Collins

Disciplined people:

• Level 5 Leadership
• First who . . . Then what

Disciplined thought:

• Confront the brutal facts
• Hedgehog concept

Disciplined action:

• Culture of discipline
• Technology accelerators
• The flywheel concept and the doom loop

Source: http://blueoceanstrategy.typepad.com/creatingblueoceans/2007/11/one-minute-su-1.html

Blue Ocean Strategy Wisdom: Shift from Red to Blue

Blue Ocean Strategy Wisdom: Shift from Red to Blue

People have a general tendency to seek the false comfort and security of the familiar, which helps to explain the abundance of Red Oceans. However, by shifting our focus away from the familiar through a systematic approach, new insights are gained which lead to profitable Blue Oceans. Continuing with our Blue Ocean Wisdom series, today we address this point through an excerpt entitled “Shift from Red to Blue” (from the book Blue Ocean Strategy, page 28, by Professor W. Chan Kim and Professor Renée Mauborgne).

To fundamentally shift the strategy canvas of an industry, you must begin by reorienting your strategic focus from competitors to alternatives, and from customers to noncustomers of the industry. To pursue both value and cost, you should resist the old logic of benchmarking competitors in the existing field and choosing between differentiation and cost leadership. As you shift your strategic focus from current competition to alternatives and noncustomers, you gain insight into how to redefine the problem the industry focuses on and thereby reconstruct buyer value elements that reside across industry boundaries. Conventional strategic logic, by contrast, drives you to offer better solutions than your rivals to existing problems defined by your industry.

Source: http://blueoceanstrategy.typepad.com/creatingblueoceans/2007/11/blue-ocean-st-1.html

Giving the gift of health

Blue Ocean Strategy Articles : Giving the gift of health

With the holiday retail season in full swing in many parts of the world, you might be wondering what to give that special loved one of yours. It’s hard to argue that being healthy is one of the best gifts, and now, thanks to Visa’s Blue Ocean-like thinking that is targeting alternatives over competitors and non-customers over customers, it seems possible to finally give the gift of health—through its prepaid healthcare giftcards.

Dominic Basulto over at the Endless Innovation blog writes:

With healthcare costs continuing to soar across America and tens of millions of people lacking any form of health insurance whatsoever, this seems like a great idea: prepaid healthcare gift cards. At the Givewell site, it's now possible to purchase the Prepaid Healthcare Visa Gift Card in various increments ranging from US$ 25 to US$ 5000. According to the Wall Street Journal, the Healthcare Visa Gift Card will cover prescription co-payments, elective surgery, contact lenses and gym membership. Health insurance company Highmark, which plans to sell "several hundred thousand" gift cards during 2008, will start off marketing the card in Pennsylvania before rolling it out nationwide.

Source: http://blueoceanstrategy.typepad.com/creatingblueoceans/2007/11/giving-the-gift.html

Defying Conventional Wisdom: Flying Bazaars

Blue Ocean Strategy Articles : Defying Conventional Wisdom: Flying Bazaars

Blue Ocean Strategy is all about challenging conventional wisdom – questioning taken-for-granted assumptions, and overstepping industry boundaries. It’s a frame of mind of continuously questioning and searching for a different angle and fresh perspective. You can draw inspiration from everyday life, and train your mind by having a discerning view of the world around you. Consider the following bit of comic insight as example of challenging conventional wisdom.

Flying Bazaars

Duty-free shopping is one of the more irritating things about flying. Think about it: The duty free carts are invariably wheeled out right after the principal meal of an overseas flight, when you either want to visit the toilet to freshen up, or simply close your eyes and relax. Both are impossible as the carts, working in perfect unison on parallel isles, block all traffic, and necessitate that the lights stay on in case of a potential transaction. And for those passengers who actually want to buy something at 30,000 feet, chances are that the exact product they are looking for is not available, or they can’t get change in the very currency they hold. So here is a solution: Why not institute specially designated “shopping flights?” Such flights would feature a wide array of vendors whisking products up and down the aisles during the entire flight. This way mid-air shoppers can browse at leisure and are sure to find something special from the much-expanded selection, insuring a rich shopping experience. And best of all, such flying bazaars would not bother regular travelers, who could then have the option to choose “shopping-free flights.”

Source: http://blueoceanstrategy.typepad.com/creatingblueoceans/2007/11/defying-conve-1.html

สัมมนา Creating Blue Ocean Business สร้างธุรกิจแนวคิด mai

สัมมนา Creating Blue Ocean Business สร้างธุรกิจแนวคิด mai

ได้รับการตอบรับจากผู้ที่สนใจ รวมไปถึงผู้ประกอบการน้อยใหญ่อย่างล้นหลามเลยทีเดียว สำหรับการสัมมนาในหัวข้อ Creating Blue Ocean Business..สร้างธุรกิจแนวคิด mai งานนี้คุณชนิตร ชาญชัยณรงค์ ผู้จัดการตลาดหลักทรัพย์ mai ได้กล่าวเปิดงานด้วยการตอกย้ำความคาดหวังที่อยากเห็นคลังความรู้จากมุมหนังสือ "mai CEO Book Corner" ในห้องสมุดมารวยของตลาดหลักทรัพย์แห่งประเทศไทย ได้ช่วยจุดประกายความคิดให้กับผู้ประกอบการรายใหม่ และผู้ที่เข้าร่วมรับฟังการสัมมนาอย่างกว้างขวาง โดยเฉพาะเนื้อหาสาระที่มาจากหนังสือดีที่ชื่อ Blue Ocean Strategy ซึ่งเขียนโดย W. Chan Kim and Renee ที่เป็นเสมือนคู่มือสำหรับผู้ประกอบการหรือผู้ที่เริ่มต้นทำธุรกิจ

งานนี้คุณธันยวัชร ไชยตระกูลชัย บรรณาธิการบริหารนิตยสารไทคูน ได้มาถ่ายทอดทุกมองของ Blue Ocean Strategy สรุปได้ว่า หลักใหญ่ใจความของหนังสือเล่มนี้ได้โฟกัสไปที่กลยุทธ์การบริหารธุรกิจ ที่ไม่มุ่งเน้นการแข่งขันกับผู้ประกอบการกลุ่มเดิม แต่ต้องการให้เกิดแรงบันดาลใจทางการตลาดใหม่ ๆ ในลักษณะสร้างสรรค์ผลิตภัณฑ์หรือบริการ ที่ตอบโจทย์ความต้องการของผู้บริโภคแต่ละกลุ่มอย่างชัดเจน เพื่อก่อให้เกิดประโยชน์หรือคุณค่าทั้งต่อองค์กรและลูกค้า บนความแตกต่างหลากหลายคู่ขนานไปกับการทำให้องค์กรสามารถลดต้นทุนที่ไม่จำเป็น เพื่อปูทางสู่การเติบโตตามเป้าหมาย

โดยมีผู้บริหารระดับสูงของบริษัทจดทะเบียนในตลาด mai ทั้งคุณวรพจน์ ศรีมหาโชตะ จากมัลติแบกซ์ และคุณปกรณ์ บริมาสพร จากไลท์ติ้งแอนด์ อีควิปเม้นท์ มาร่วมแบ่งประสบการณ์จริงจากการนำแนวคิดแบบ Blue Ocean Strategy มาปรับใช้ได้อย่างลงตัวเลยทีเดียว งานนี้บอกได้คำเดียวว่าทุกท่านที่เข้ามาร่วมการสัมมนาครั้งนี้ ได้รับมุมมองดี ๆ กลับไปมากมายไม่ว่าจะเป็นแนวคิดเชิงกลยุทธ์ การจุดประกายเพื่อค้นหาความแปลกใหม่ เพื่อสร้างธุรกิจในสไตล์ mai ได้อย่างเป็นระบบ

Source: http://www.moneychannel.co.th/Menu6/ClipCornerMSociety/tabid/112/newsid572/25371/Default.aspx